CORPORATE CRIME REPORTER
Former
L'Oreal Exec Says Company Fired Him for Blowing Whistle on Illegalities
22 Corporate Crime Reporter 36, September 18, 2008
If your director of regulatory affairs becomes a whistleblower, you have a problem.
L'Oreal USA has a problem.
Jerome Chevallier joined L'Oreal USA as an intern in May 1994.
He worked his way up the organization until he became the cosmetic firm's director of regulatory affairs in July 2003.
Chevallier was fired in August 2007.
Last month, he sued L'Oreal in a state court in Elizabeth, New Jersey.
In the lawsuit, Chevallier claims he was fired because he “voiced strong objections and complained about unlawful activities.”
Chevallier says that in addition to voicing harsh opposition to his management's refusal to comply with regulatory laws, he "objected to and complained about false packaging, company position statements and other public company documents which defrauded consumers."
In particular, Chevallier says that L'Oreal marketed its lip gloss Maybelline contaminated with DBP to South America.
DBP is banned in South America because of its carcinogenicity and risks to reproduction.
Chevallier also claims that L'Oreal marketed a product called Pureology, which used animal products despite marketing that claimed that Pureology was formulated with vegan products.
Chevallier says that L'Oreal also used a banned product called Triclosan despite statements by the company that it would not be used.
Chevallier says that because he objected to the marketing of these products, he was subjected to “unwarranted criticism, false criticism, nit-picking, false and fabricated performance reviews” and was treated with "disdain, disrespect, and as persona non grata."
The straw that broke the camel's back?
Chevallier says that in early July 2007 he learned that L'Oreal products in Europe contained a preservative – Kathon CG – above lawful levels and that this information had been omitted from the company's computer system "so as to avoid regulatory department scrutiny."
After requesting a recall of the products, Chevallier was prohibited from having any further communications with his counterparts in Europe.
And after a dust-up with superiors over the incident, Chevallier was fired.
He was told that the reason he was fired was that he had sold L'Oreal products he had received for free on EBay.
Chevallier admits that he did in fact sell free L'Oreal products on EBay but says that's not the reason he was fired.
He was fired, he claims, for objecting to corporate wrongdoing.
In a statement e-mailed to Corporate Crime Reporter, L'Oreal says Chevallier was fired for selling free L'Oreal products on EBay.
“L'Oréal USA has investigated this complaint and unequivocally denies these allegations,” the L'Oreal statement said. “Chevallier was terminated, as he has acknowledged in his complaint, for violating a company policy prohibiting the sale of the company's products for personal profit.”
“L'Oréal is committed to upholding the highest standards of safety for all the products it manufactures and distributes. All the products marketed by the L'Oréal Group are in full compliance with FDA regulations as well as the European Union Cosmetic Directive and the requirements for safety in the more than 130 countries where its products are sold.”
“L'Oréal
confidently and proudly stands behind each and every product that it sells,
and intends to vigorously defend itself in this matter.”
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